Last update:
07.01.2023
Magda Olszewska
The entrepreneurs are obliged to pay the social security contributions. The amount of the social security contributions is in general equal for all the entrepreneurs, irrespective of the value of the revenues achieved.
The social security contributions are obligatory with the exception of the sickness insurance, which is voluntary.
The following allowances are available to the entrepreneurs:
The standard rates of the social security contributions are calculated on the basis of the amount of 60% of the forecasted average monthly remuneration. As of 2023 this is the amount of 4.161 PLN.
The following amounts of the social security contributions are to be paid monthly by the entrepreneurs in 2023:
| Type of the social security contribution | Rate | Amount [PLN] |
|---|---|---|
| Pension insurance | 19,52% | 812,23 |
| Disability insurance | 8% | 332,88 |
| Sickness insurance (not obligatory) | 2,45% | 101,94 |
| Accident insurance | 1,67% | 69,49 |
| Employees Fund and Solidarity Fund | 2,45% | 101,94 | SUM | 1418,48 | Sum (if the sickness insurance is not chosen) | 1316,54 |
It should be noted that the health insurance contributions (which are not covered by this article) should be due as well.
If you are undertaking carrying out of the business activities for the first time, you may be eligible for the “allowance for the start”.
The “allowance for the start” is also available to the entrepreneurs, who are undertaking carrying out of the business activities again, on the condition that the period of at least 60 months have passed from the day they suspended their business or ended it.
The “allowance for the start” is not available to the entrepreneurs, who are carrying out the business activities for the former employer, for whom they had carried out activities within the employment relationship in the ongoing or previous calendar year, which are within the scope of the performed business activities.
According to this allowance you are not obliged to pay the social security contributions for the first 6 months following the opening of the business.
If you started carrying out business activities in the course of the month, the first month is not calculated as part of the six-month period during which you are eligible for the “allowance for the start”.
Important: When setting-up your business, it is advisable to indicate a date later than the first day of the month as a date of the set-up of your business. This way you can prolong the period for which are eligible for the “allowance for the start” by almost one month.
It should be noted that the health insurance contributions are not considered social security contributions and will be due irrespectively of the applied “allowance for the start”.
The application of the “allowance for the start” will have among others the following consequences for you:
However, when applying for the “allowance for the start”, you will still be eligible to use the public health services (going to the public physician, getting medical treatment in the public school) since access to the public health services is connected with the health insurance contributions (which are due independently from the social security contributions).
It is possible to waive the “allowance for the start”.
In some cases it may be reasonable to waive the “allowance for the start” especially if you foresee longer absence from the work due to the pregnancy or sickness.
To waive the “allowance for the start" you have to submit an appropriate form to the Social Insurance Institution (ZUS).
If you are undertaking carrying out of the business, you may apply the reduced social security contribution rates for 24 months following the setting-up of the business.
If you applied the “allowance for start” incentive, the 24-month period will be calculated starting from the moment, from which the 6-month period for the “allowance for start” expired or, if you waived the application of the “allowance for start”, from the moment in which you started to be subject to the social security contributions.
In practical terms it means, that the entrepreneurs setting up their businesses, may apply the following incentives:
The application of the preferential contributions is not available to the entrepreneurs, who are already carrying out or in the course of the last 60 months were carrying out business activities.
The application of the preferential contributions is also not available to the entrepreneurs, who are carrying out the business activities for the former employer, for whom they have carried out in the current or previous calendar year activities, which are within the scope of the performed business activities.
The preferential rates of the social security contributions are calculated on the basis of the declared amount, however no smaller than 30% of the amount of the minimum remuneration. In practice the smallest possible amount (30% of the amount of the minimum remuneration) is usually chosen. This amount equals 1047 PLN as of 2023.
The following amounts of the social security contributions are to be paid monthly by the entrepreneurs in 2023 applying the reduced rates on the basis of the smallest possible calculation base:
| Type of the social security contribution | Rate | Amount [PLN] |
|---|---|---|
| Pension insurance | 19,52% | 204,37 |
| Disability insurance | 8% | 83,76 |
| Sickness insurance (not obligatory) | 2,45% | 25,65 |
| Accident insurance | 1,67% | 17,48 |
| Employees Fund and Solidarity Fund | - | - | SUM | 331,26 | Sum (if the sickness insurance is not chosen) | 305,61 |
Remember that the health insurance contributions (not covered by this article) are due irrespectively of the applied incentive covering the social security contributions.
The "small ZUS plus" is another incentive available to the entrepreneurs, who are not eligible for the previously listed incentives (“allowance for start” and preferential contributions) anymore and whose revenues do not exceed 120.000 PLN.
You may apply the “small ZUS plus” if:
The amount of the social security contributions of the entrepreneurs applying the “small ZUS plus” incentive is based on the amount of their average monthly income of the previous year divided by two. The calculation base cannot be lower than the 30% of the amount of the minimum remuneration and cannot be higher than 60% of the forecasted average monthly remuneration. It means the amount of the social security contributions cannot be lower than the amount due by the application of the preferential rates and cannot be higher than the amount due by the application of the standard rates.
The application of the “small ZUS plus” incentive will be usually beneficial, if the 50% of the average monthly income of the entrepreneur from the previous year does not exceed 60% of the forecasted average monthly remuneration. As of 2023 this is the amount of 4.161 PLN. The application of the „small ZUS plus” should therefore be beneficial, if your average monthly income in 2022 has been smaller than 8.322 PLN (8.322 PLN/ 2 = 4.161 PLN)
You may apply the “small ZUS plus” for the period of 36 months within the period of 60 months.
The starting entrepreneur who has exhausted the other beneficial schemes (“allowance for start” and preferential contributions) will usually swich to the “small ZUS plus” for the next 36 months. However it is important to remember, that the possibility to apply the “small ZUS plus” is available not only to entrepreneurs starting their business but basically for every entrepreneur every 60 months.
To apply for the “small ZUS plus” you need to submit an appropriate form to the Social Insurance Institution (ZUS) until the end of January of the year, for which you want to apply the incentive. If you miss the deadline, you will not be eligible for the “small ZUS plus” in the given year and may apply for the “small ZUS plus” only for the next year.
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My name ist Magda Olszewska. I’m Polish Tax Advisor and leader of the Olszewska Tax Consulting. I write posts regularly for our blog on the tax issues which we deal with in our praxis.
If you have any questions or would like to inquire about our advisory services, please feel free to contact me.
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